If I sell and install grave monuments that get permanently attached to a concrete foundation and become part of the cemetery property, do I need to charge my customers sales tax?

Plain-English summary

The Missouri Department of Revenue ruled that whether a monument dealer owes sales tax on a grave monument depends entirely on how the sale is structured, not on what the monument itself is. Monuments are ordinarily tangible personal property, but once a monument is permanently affixed to a concrete foundation as part of an installation, it loses its character as tangible personal property and becomes part of the real property (the cemetery plot) it's attached to.

When the Applicant contracts to both sell and install a monument, and title passes only after installation, the Department treats the Applicant as a contractor improving real property rather than a retailer. In that scenario, the Applicant does not charge the customer sales tax on the monument -- instead, the Applicant is the final consumer of the materials and must pay sales or use tax on its own purchase of the monument.

The result flips if the Applicant sells a monument without installing it, or if the contract separately states the monument price from the installation charge and title passes to the customer before installation. In that case the Applicant is making a retail sale of tangible personal property and must charge the customer sales tax on the monument price (though not on the separately stated installation charge).

Because the Applicant does both -- selling some monuments outright and installing others as a contractor -- the ruling instructs the Applicant to buy all monuments under a resale exemption certificate (paying no tax at purchase), then either collect sales tax from retail customers or self-accrue sales/use tax on the monuments it installs itself.

What this means for you

If you sell and install monuments as a package

When your contract includes installation and the monument becomes a permanent part of the cemetery plot before title passes, you're acting as a contractor. You don't charge your customer sales tax on the monument, but you owe sales or use tax on what you paid for it as the "final consumer" of that tangible personal property.

If you sell monuments without installing them, or bill installation separately

If title to the monument passes to the customer before you install it, or your invoice separately states the monument price and the installation charge, you're making a taxable retail sale. Charge sales tax on the monument itself, but not on the separately stated installation charge.

If your business does both

Purchase your monument inventory using a resale exemption certificate so you don't pay tax upfront. Then track each sale: collect sales tax on true retail sales, and self-accrue (pay directly to the state) sales or use tax on the monuments you install as a contractor.

Funeral industry and cemetery-related businesses generally

The same real-property-versus-tangible-personal-property distinction that applies here traces back to Bucholz Mortuaries, Inc. v. Director of Revenue, 113 S.W.3d 192 (Mo. Banc 2003), so this reasoning likely extends to other permanently installed cemetery or memorial fixtures, not just monuments specifically.

Common questions

Q: Do I have to charge sales tax when I sell and install a grave monument?
A: No, not when installation is part of the deal and the monument becomes a permanent part of the real property before title passes -- you're treated as a contractor, not a retailer, for that transaction.

Q: Do I still owe any tax at all in that situation?
A: Yes. As the "final consumer" of the monument's materials, you owe sales or use tax on your own purchase price for the monument, even though you don't charge your customer.

Q: What if my customer buys a monument but arranges their own installation, or I bill installation as a separate line item with title passing beforehand?
A: Then you're making a retail sale of tangible personal property, and you must charge your customer sales tax on the monument (not on the separately stated installation charge).

Q: How should I handle purchasing if I do both retail sales and contractor installations?
A: Buy monuments under a resale exemption certificate so you don't pay tax at purchase, then collect sales tax on retail sales and self-accrue sales or use tax on the monuments you install as a contractor.

Q: Can I rely on this ruling for my own business?
A: Not directly. This letter ruling is binding on the Department only with respect to this specific Applicant, only for three years from its date, and only as long as the facts and the law don't change. Other taxpayers can look to it for how the Department reasons, but they cannot rely on it as their own binding authority -- you'd need to request your own letter ruling for that protection.

Citations and references

Statutes and regulations:

• Section 144.020.1, RSMo (imposition of sales tax on retail sales of tangible personal property)
• Section 536.021.10, RSMo (letter ruling authority)
• 12 CSR 10-1.020 (letter ruling procedure)
• 12 CSR 10-112.010 (contractors as final users/consumers of property used to improve real estate)
• 12 CSR 10-103.600 (separately stated installation charges)

Case law:

• Bucholz Mortuaries, Inc. v. Director of Revenue, 113 S.W.3d 192 (Mo. Banc 2003)

Subject

Taxability of Grave Monuments

Source

• Landing page: Missouri DOR Rulings Search
• Ruling: LR 8385

Original ruling text

Dear Applicant:

This is a letter ruling issued by the Director of Revenue under Section 536.021.10, RSMo, and Missouri Code of State Regulations 12 CSR 10-1.020, in response to your letter dated February 2, 2026.

The facts as presented in your letter ruling request are summarized as follows. The facts in this letter ruling are consistent with the previous letter ruling issued to you on March 27, 2019:

Applicant sells and installs grave monuments. The monuments are permanent structures attached to secure concrete foundations. The monuments become part of the customer's property after installation. Applicant retains no right to the property, such as Applicant's right to repossess the grave monuments that Applicant installs if Applicant's customer fails to pay for the grave monument in full.

ISSUE :

Are Applicant's sale of grave monuments subject to sales tax as sales of tangible personal property?

RESPONSE :

No. Applicant's sales of grave monuments are not subject to sales tax as sales of tangible personal property.

Section 144.020.1, RSMo, provides "A tax is hereby levied and imposed upon all sellers for the privilege of engaging in the business of selling tangible personal property or rendering taxable service at retail in this state."

A contractor is considered to be the final user or consumer of the tangible personal property purchased to complete his contract to improve the real property. Acting as a contractor making improvement to real property, Applicant is not making sales of tangible personal property subject to sales tax. See Missouri Code of State Regulations 12 CSR 10-112.010 and Bucholz Mortuaries, Inc. v. Director of Revenue , 113 S.W.3d 192 (Mo. Banc 2003).

Monuments are tangible personal property. However, when the monuments are permanently affixed to real property, the monuments lose their character as tangible personal property and become part of the real property to which they are affixed.

When Applicant contracts with a purchaser for the sale of a monument and the installation of the monument is intended as part of the sale, the monument is permanently affixed to the real property, and the title passes after installation; then no sales tax is due on the sale of the monument. Applicant is operating as a contractor. A contractor is deemed to be the final consumer of tangible personal property prior to the tangible personal property becoming part of the real property. As the final consumer of the monument as tangible personal property, Applicant must pay sales or use tax on Applicant's purchase of materials for the monument.

If Applicant sells a monument without installation or under a contract in which the price for the monument and the installation charge are separately stated and the title to the monument passes to the purchaser before installation, Applicant is making a retail sale of tangible personal property. Applicant must charge the purchaser sales tax on the sale of the monument, but not the separately stated installation charge. See Missouri Code of State Regulations 12 CSR 10-103.600.

When Applicant makes both retail sales of monuments to some customers and also operates as a contractor for others, Applicant should purchase the monuments under a resale exemption certificate and not pay tax at the time of its purchases. Applicant should collect sales tax on its retail sales of monuments and self-accrue sales or use tax on the purchase price of monuments that Applicant installed as a contractor.

This letter ruling is binding upon the Department of Revenue with respect to the Applicant for three (3) years from the date of this letter and is subject only to statutory changes by the General Assembly and to changes in the interpretation of law by the courts or administrative tribunals.  If a change occurs, the taxpayer who relies upon an outdated interpretation may be subject to additional taxes, interest and penalties, which may be imposed prospectively from the date of the change.  For this reason, the interpretation set forth above should be reviewed on a regular basis.  Please note that any change in or deviation from the facts as presented will render this ruling inapplicable.

Should additional information be needed, please contact Legal Counsel Gabriel Barnes, General Counsel's Office, Post Office Box 475, Jefferson City, Missouri 65105-0475, phone (573) 751-0961.

Sincerely,

Trish Vincent